Chevron is set to close a $53 billion deal to buy rival Hess after nearly two years of negotiations. The deal gives Chevron access to Hess’ 30% stake in the Stabroek offshore block in Guyana, estimated to hold more than 11 billion barrels of oil. Shares of Chevron fell about 1.5% following the news. The deal ends a major standoff in the oil and gas industry and transforms Guyana into the second-fastest-growing economy in the world. Exxon, which currently operates the block, has been partnered with Hess since 2014. Exxon holds a 45% stake, while China National Offshore Oil Corporation (CNOOC) holds 25%. Exxon expressed disagreement with the arbitration panel’s ruling but respected the process. The deal is seen as transformative for Chevron, enhancing its growth profile and value to shareholders. It is one of the largest M&A transactions in the energy sector and is expected to drive free cash flow and production growth into the 2030s. The sector has already seen over $150 billion in deal value in 2025, with the “how we fuel and power” domain projected to cross $6 trillion in value by 2035. The deal is likely to spur other companies in the sector to consider potential moves.

Read more at Yahoo Finance.: Chevron’s $53B deal for Hess clinches access to a ‘once-in-several-lifetimes’ asset for the oil giant